Indaba 2015 - IBM mining on demand
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By Dirk Claasens, IBM Vice President for Industrial Products , presents a point of view of the South African Mining Industry at Mining Indaba 2015. The industry of mining is by its nature highly exposed to risk. Its asset intensity, commodity price dependence and health safety and security (HSE) profile demand predictability. So it seems perfectly understandable that productivity has become the mantra for the mining industry. The typical response to market volatility are austerity and capital investment cuts, but nothing more than a short term cash improvement. Urgent and sustainable productivity gains are important but responsiveness to volatile market demand is even more important. It’s called agility. Technologies pave the way to adopt a mine- on- demand supply chain design. Mine to order is the big picture approach to gaining optionality in mine design and scheduling driven by the power of big data and analytics. It’s the non-intrusive breakthrough the industry needs to be agile and thrive. Not just survive.
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Indaba 2015 - IBM mining on demand
- 1. "Mining on Demand" How Information Technology Can Transform the Mining Industry Dirk Claessens Vice President, Metals & Mining, IBM Capetown, February 2015
- 2. With the end of the commodity supercycle behind us, the mining industry has taken its initial productivity measures. More is required, the mining industry is in need of agility & visibility. Current technology facilitates this objective. We call it « Mine-on-Demand ». 2
- 3. DEMANDSUPPLY Current Status: Lack of Optionality & Integration kills Agility & Visibility 3 Establish Sell & Distribute Exploit BeneficiateDiscover Rehabilitate
- 4. DEMANDSUPPLY Current Status: Lack of Optionality & Integration kills Agility & Visibility 4 Establish Sell & Distribute Exploit Beneficiate Lack of optionality in the design and planning phase Lack of optimization and optionality in scheduling phase Discover Rehabilitate
- 5. • POC at a platinum producer demonstrated an 8 week current process reduced to minutes • Multiple realistic design scenarios can be created for immediate evaluation and optimization • Leverage descriptive, spatial visualization to inspect, analyse and animate each scenario to verify feasibility – with the ability to share options over the web Outcomes & Benefits OPTIONALITY IN DESIGN OPTIONALITY IN SCHEDULING MINE-ON- DEMAND The Solution : Optionality in Mine Design and Scheduling • Baseline, Unconstrained and Constrained Scenario Building • Optimized schedules for multiple business factors and constraints, e.g: Outcomes & Benefits • Shaft hoisting capacity • Reef Density • Tramming capacity • Waste Density • # Panels per raise line • Commodity Price Forecasts • # Raise lines per half level • Exchange Rates & Inflation Forecasts • Extraction %
- 6. DEMANDSUPPLY Current Status: Lack of Optionality & Integration Kills Agility & Visibility 6 Establish Sell & Distribute Exploit Beneficiate No mineral asset visibility as inventory on an enterprise level Discover Rehabilitate
- 7. EnterpriseSystems MiningAssetSystems The Solution : Enterprise Visibility Of The Mineral Asset Copyright, MineRP 2014 Translate to Inventory Maintain Inventory Understand Mineral Asset On Demand, auditable, traceable Mineral Asset Management •Continuous control of Mineral Asset status, at any level of granularity •Exposure of data sources for analysis, by analytics tools •Mineral Asset knowledge founded upon fully auditable/traceable mining technical information •Commercially advised mining decisions and mining-advised commercial decisions •Standardised , integrated information framework spanning the whole value chain. Outcomes & Benefits ORE RESERVE ENTERPRISE INTEGRATION
- 8. DEMAND SUPPLY End-to-end Integration will drive Agility and Visibility 8 Establish Sell & Distribute Exploit Beneficiate « Sell what you have and then mine what you sold. »
- 9. 9 Conclusion. …On Demand Mining, providing the Agility and Transparency required can be delivered today. Come and visit IBM and MineRP’s stand so we can explain..
Notas do Editor
- You do not know what you have to sell. You need to sell what you have, and then mine what you sell. The information is dispersed across a vast array of mining technical systems and you cannot consistently consolidate what you have as a mineral asset inventory. So you are stuck to live with a static mine plan and design (which stays fixed for a year or more), geared towards a fixed cut-off grade, based upon economic/demand assumptions. Also, there is not transparent , visible asset information, on an enterprise level which can be traced back into the mine operation level, at various levels of granularity.
- There are in fact two legs to the problem of lack of optionality: - You need to be able to generate dynamically a mine design and plan , in minutes, not months, initially to play around with various economic and mine variability scenarios. And then when as you have your plans ready, optimize the operation sequence, (in an hour, not months) – and importantly change this optimized plan dynamically as the reality changes around you. This allows you to deal with variability in terms of actual grade, rock characteristics, structural problems, power availability etc. and then respond appropriately, whith a new updated plan an optimized operations sequence. The old approach has been: give me your plan and constraines, and I will optimize the operational activity sequence. This is static and does not allow you to respond to demand as it happens. The new approach is give me your demand, I will plan and optimze, and change my plan and optimization as demand changes.
- So when you have both optionality in design/plan and scheduling, you become responsive to the market demand, in true Mine-On-Demand fashion. Which will by the way also contain your maintenance, service and engineering activyt as part of one optimized schedule, not as a delay which simply hits you where you do not even are aware of the economic impact. One Master Business Schedule. This has been piloted at a major platinum producer her in South-Africa.
- The second issue with the array of MTS and enterprise/operation breakpoint is that you do not have mineral assets which can be audited and traced back to its origin from an enterprise level. Asset = Resource plus Reserve (once you apply capital).
- Step One is to Index the Space: Creating a single Spatial Catalogue across all Mining Technical Info (Systems) on classification of resources and reserves. Step Two is to understand, update/enrich the spatial catalogue of mining technical info , as updates happen, Step Three is building the bridge between operation and inventory: a translation to some level of granularity in the enterprise system with full traceability back into the operation. Step Four is maintaining the inventory as and when transactions happen, both from a demand fulfilment side, as well as from the inventory replenishment side when updates happen on the mineral asset side. Scenarios Video